Question 1

Goods that are partially completed by a manufacturer are

Accepted Answer

A)   merchandise inventory
B)   work in process inventory
C)   finished goods inventory
D)   materials inventory

Question 2

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

Accepted Answer

A)   $233,000
B)   $225,600
C)   $288,800
D)   $240,400

Question 3

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Accepted Answer

A)   period costs and expensed when incurred
B)   product costs and expensed when the goods are sold
C)   product costs and expensed when incurred
D)   period costs and expensed when the goods are sold

Question 4

Product costs include direct labor and advertising expense.

Accepted Answer

A) True 
 B)False

Question 5

What is the primary criterion for the preparation of managerial accounting reports?

Accepted Answer

A)   relevance of the reports
B)   manager needs
C)   timing of the reports
D)   cost of the reports

Question 6

Differentiate between:
a) direct materials versus indirect materials
b) direct labor versus indirect labor

Accepted Answer

a) Direct materials must become a physic...

Question 7

Period costs are operating costs that are expensed in the period in which the goods are sold.

Accepted Answer

A) True 
 B)False

Question 8

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following are basic phases of the management process?

Accepted Answer

A)   supervising and directing
B)   decision making and supervising
C)   organizing and directing
D)   planning and controlling

Question 10

At the beginning of the current year, the Grant Company's work in process inventory account had a balance of $30,000. During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000. The balance in work in process inventory on December 31 is

Accepted Answer

A)   $24,000
B)   $44,000
C)   $66,000
D)   $36,000

Question 11

Another term for factory overhead is

Accepted Answer

A)   surplus
B)   period cost
C)   supervisory cost
D)   factory burden

Question 12

A performance report that identifies the amount of employee downtime is a financial accounting report.

Accepted Answer

A) True 
 B)False

Question 13

Zoe Corporation has the following information for the month of March:  Prepare a) a schedule of cost of goods manufactured, b) an income statement for the month ended March 31, and c) the inventory section of the balance sheet.

Accepted Answer

a)

b)

c)

Required: Present all calcu...

Question 14

Which of the following is not a factory overhead cost?

Accepted Answer

A)   materials used directly in the manufacturing process of the product
B)   insurance on factory equipment
C)   salaries of production supervisors
D)   property tax on factory building

Question 15

Prime costs are

Accepted Answer

A)   direct materials and factory overhead
B)   direct materials and direct labor
C)   direct labor and factory overhead
D)   period costs and factory overhead

Question 16

Given the following data:   Work in process, beginning $14,000 Work in process, ending 20,000 Direct labor costs 4,000 Cost of goods manufactured 8,000 Factory overhead 8,000\begin{array} { | l | l | } \hline 	ext { Work in process, beginning } & \$ 14,000 \\hline 	ext { Work in process, ending } & 20,000 \\hline 	ext { Direct labor costs } & 4,000 \\hline 	ext { Cost of goods manufactured } & 8,000 \\hline 	ext { Factory overhead } & 8,000 \\hline\end{array} Work in process, beginning  Work in process, ending  Direct labor costs  Cost of goods manufactured  Factory overhead ​$14,00020,0004,0008,0008,000​​  Direct materials used is

Accepted Answer

A)   $2,000
B)   $4,000
C)   $8,000
D)   $14,000

Question 17

Match the items below for a bakery to the type of cost a-d) .
-Depreciation expense-factory

Accepted Answer

A)  Direct materials
B)  Direct labor
C)  Factory overhead
D)  Non-manufacturing cost

Question 18

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Frosting

Accepted Answer

A)  Prime costs
B)  Conversion costs
C)  Both prime and conversion costs
D)  Neither prime or conversion costs

Question 19

Period costs include

Accepted Answer

A)   current assets on the balance sheet
B)   current liabilities on the balance sheet
C)   operating costs that are shown on the income statement when products are sold
D)   operating costs that are shown on the income statement in the period in which they are incurred

Question 20

What term refers to the cost of changing direct materials into a finished manufactured product?

Accepted Answer

A)   factory overhead cost
B)   period cost
C)   conversion cost
D)   direct labor cost

Exam 16: Managerial Accounting Concepts and Principles

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Correct Answer
verified

Correct Answer
verified

Product costs include direct labor and advertising expense.

Correct Answer
verified

Another term for factory overhead is

Correct Answer
verified

Period costs are operating costs that are expensed in the period in which the goods are sold.

Correct Answer
verified

Which of the following is not a factory overhead cost?

Correct Answer
verified

Period costs include

Correct Answer
verified

Which of the following are basic phases of the management process?

Correct Answer
verified

Correct Answer
verified

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

Correct Answer
verified

Match the items below for a bakery to the type of cost a-d) . -Depreciation expense-factory

Correct Answer
verified

What term refers to the cost of changing direct materials into a finished manufactured product?

Correct Answer
verified

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Frosting

Correct Answer
verified

A performance report that identifies the amount of employee downtime is a financial accounting report.

Correct Answer
verified

What is the primary criterion for the preparation of managerial accounting reports?

Correct Answer
verified

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Correct Answer
verified

Prime costs are

Correct Answer
verified

Zoe Corporation has the following information for the month of March: Prepare a) a schedule of cost of goods manufactured, b) an income statement for the month ended March 31, and c) the inventory section of the balance sheet.

Correct Answer
verified
a) b) c) Required: Present all calcu...
View Answer

Differentiate between: a) direct materials versus indirect materials b) direct labor versus indirect labor

Correct Answer
verified
a) Direct materials must become a physic...
View Answer

Goods that are partially completed by a manufacturer are

Correct Answer
verified

Exam 16: Managerial Accounting Concepts and Principles

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Product costs include direct labor and advertising expense.

Correct AnswerverifiedShow Answer

Another term for factory overhead is

Correct AnswerverifiedShow Answer

Period costs are operating costs that are expensed in the period in which the goods are sold.

Correct AnswerverifiedShow Answer

Which of the following is not a factory overhead cost?

Correct AnswerverifiedShow Answer

Period costs include

Correct AnswerverifiedShow Answer

Which of the following are basic phases of the management process?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

Correct AnswerverifiedShow Answer

Match the items below for a bakery to the type of cost a-d) . -Depreciation expense-factory

Correct AnswerverifiedShow Answer

What term refers to the cost of changing direct materials into a finished manufactured product?

Correct AnswerverifiedShow Answer

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Frosting

Correct AnswerverifiedShow Answer

A performance report that identifies the amount of employee downtime is a financial accounting report.

Correct AnswerverifiedShow Answer

What is the primary criterion for the preparation of managerial accounting reports?

Correct AnswerverifiedShow Answer

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Correct AnswerverifiedShow Answer

Prime costs are

Correct AnswerverifiedShow Answer

Zoe Corporation has the following information for the month of March: Prepare a) a schedule of cost of goods manufactured, b) an income statement for the month ended March 31, and c) the inventory section of the balance sheet.

Correct Answerverifieda) b) c) Required: Present all calcu...View AnswerShow Answer

Differentiate between: a) direct materials versus indirect materials b) direct labor versus indirect labor

Correct Answerverifieda) Direct materials must become a physic...View AnswerShow Answer

Goods that are partially completed by a manufacturer are

Correct AnswerverifiedShow Answer

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a) b) c) Required: Present all calcu...
View Answer

Correct Answer
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a) Direct materials must become a physic...
View Answer

Correct Answer
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